SANUWAVE Health, Inc.

Where It Passes

Where It Falls Short

• Growth0% pass✓ 3✗ 10▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 4.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -1.3% vs Rev: 0.1%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency2/18 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth35.0%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 70.4% -> 77.1%, operating margin -2.6% -> 11.2%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR61.1%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation23% pass✓ 12✗ 16▾

  10 of 13 flag SNWV's valuation — Graham, Lynch, Dreman +7 more

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 4.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value19.3%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=19.3%, ROC=194.5%

  ✓GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS4.4x

  ✓Dreman< 12x✓Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)

  ✗Dreman< 8x

  Price / Book Value per Share

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=4.4x

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=4.4x, FCF Yield=12.4%

  ✓PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=4.4x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($1.82)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+26.54%; #213/6340 (top 3.4%)

  ✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.1820; #4282/6449 (top 66.4%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS4.4x

  ✓NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+2.6399; #893/5247 (top 17.0%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+16.61%; #360/4519 (top 8.0%)

  ✓OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-89.19%; #5979/6202 (top 96.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability31% pass✓ 19✗ 16▾

  11 of 16 flag SNWV's profitability — Graham, Buffett, Lynch +8 more

  Positive EPS (10 years)1/18 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)2/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)729.6%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)11.2% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$11.4M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 4.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE145.8%

  ✓Lynch> 15%

  EBIT / Enterprise Value19.3%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=19.3%, ROC=194.5%

  ✓GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets31.63%

  ✓PiotroskiROA > 0

  ROA Change YoY-109.84% -> 31.63% (delta: +141.47%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=10.38%, ROA=31.63%

  ✗PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY75.2% -> 77.1%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue27.0%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity145.8%

  ✓Dreman> 12%

  Margin of SafetyP/E=4.4x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity729.6% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency2/18 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue-1.1%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity145.8%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-2.6% (2023) -> 11.2% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 70.4% -> 77.1%, operating margin -2.6% -> 11.2%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+26.54%; #213/6340 (top 3.4%)

  ✓AsnessTop 30% of eligible cross-section✓OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+96.82%; #154/3702 (top 4.2%)

  ✓AsnessTop 30% of eligible cross-section

  Net income / positive book equity+145.79%; #44/5226 (top 0.8%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.6431; #5085/5884 (top 86.4%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years1/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Debt & Leverage33% pass✓ 7✗ 8▾

  8 of 12 flag SNWV's debt & leverage — Graham, Buffett, Lynch +5 more

  LT Debt vs Net Current AssetsLT Debt $16.1M vs NCA $6.8M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 13.52, IC: 1.3x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.15

  ✓Lynch< 0.33

  Cash - Long-term Debt$-4.2M

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 43.23%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.18

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity0.15

  ✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  Debt Levels0.15

  ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=1.3x, D/EBITDA=3.7x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.15

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.1474; #1495/4210 (top 35.5%)

  ✗AsnessTop 30% of eligible cross-section
• Verdicts33% pass✓ 4✗ 8▾

  Split decision: 8 FAIL · 5 NEUTRAL · 2 PASS · 1 BUY

  Overall verdict

  ✗GrahamFAIL (0/9)✗BuffettFAIL (3/9)✗LynchFAIL (4/7)✓GreenblattRank #19•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (4/11)•MungerNEUTRAL (3/4)•PabraiNEUTRAL (2/3)✓AkreBUY (5/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)•TempletonNEUTRAL (5/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1157/2370 (Top 48.8%))✗NeffFAIL (3/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Efficiency38% pass✓ 5✗ 6▾

  5 of 8 flag SNWV's efficiency — Graham, Buffett, Dreman +2 more

  Current Ratio1.18

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-1703.5%

  ✗Buffett> 10%

  ROIC - WACC-1713.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)194.5%

  ✓Greenblatt> 25%

  Current Ratio Change YoY0.36 -> 1.38

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.08x -> 1.18x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.18

  ✗Dreman> 1.5

  Return on Invested Capital-11.4%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=46.3%; FY2025: ROIC=16.6%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC16.6% (RR=100% x ROIC=16.6%)

  ✓AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)2/2 years above 12% (latest 16.6%)

  ✓SleepROIC > 12% in a majority of years
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Piotroski, Dreman, Marks +2 more object

  Free Cash Flow Proxy$11.4M

  ✓BuffettPositive and growing

  FCF Positive and Growing$2.6M

  ✓LynchPositive and growing

  Operating Cash Flow$3.9M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=10.38%, ROA=31.63%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)

  ✗Dreman< 8x

  P/E or FCF YieldP/E=4.4x, FCF Yield=12.4%

  ✓PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/12 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency2/18 years positive

  ✗SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$2.6M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+16.61%; #360/4519 (top 8.0%)

  ✓OshaughnessyTop 10% of eligible cross-section